Nikkei sags as virus panic overshadows ECB stimulus

March 19 (Reuters) - Japan's share benchmark Nikkei sagged
on Thursday, reversing earlier gains as the European Central
Bank's latest promise of stimulus only briefly comforted
investors worried about the economic fallout from the
coronavirus pandemic.
The Nikkei average .N225 slipped 0.7% to 16,602.26 by
midday, not far from Tuesday's 3-1/2-year low of 16,378.94.
Earlier in the session, the index rose as much as 2.6%.
The Nikkei's volatility index .JNIV , a measure of
investors' volatility expectations based on option pricing and
considered to be a fear gauge, rose 1.1% to 56.74, off Monday's
nine-year peak of 60.86.
It seems like some global investors have been rushing to
liquidate their holdings in fear of potential market closures
due to the virus crisis, traders said.
The Nikkei's heavyweight SoftBank Group Corp 9984.T
tumbled 10.3% on growing uncertainty over its management of a
portfolio of unproven startups.
The tech conglomerate's shares lost 10.9% on Wednesday to
take its market cap below that of mobile phone unit SoftBank
Corp 9434.T for the first time. The broader Topix .TOPX continued to outperform the Nikkei
to finish the morning session up 1.5% at 1,289.46.
But it too gave up gains from earlier in the session when it
rose more than 3% after the ECB unveiled its 750 billion euro
asset-purchase programme. The markets, however, continue to draw support from hopes
the Bank of Japan will buy Exchanged Traded Funds more
aggressively, analysts said.
About three-fourth of the 33 sector sub-indexes on the Tokyo
Stock Exchange traded higher, with land transport .IRAIL.T ,
air transport .IAIRL.T and pharmaceutical .IPHAM.T being the
top three performing sectors.
Unizo Holdings 3258.T soared 12% as the hotel chain said
top shareholders Elliott Management and Ichigo Asset Management
have agreed to tender their shares to Lone Star after the U.S.
fund raised its bid to 6,000 yen per share. The dollar rose versus the yen and was last at 109.28 yen
JPY=EBS , a three-week high, also providing a tailwind for the
broader market. A weaker yen boosts corporate profits when they
are repatriated. USD/
However, Fujifilm Holdings Corp 4901.T shed 8.9% after it
said it expects no direct earnings impact from potential sales
growth of Favipiravir in China for now as its license for the
key ingredient in the country already expired last year.
On Wednesday, Fujifilm's shares surged by a daily limit of
15.4% after a Chinese official said an active ingredient of the
company's Avigan anti-flu drug appeared to help coronavirus
patients recover.